Starting Tuesday, oil companies and offshore contractors must comply with a government mandate requiring broad safety management systems designed to reduce human errors and shrink operational risks that may cause injury and death. This has been a year long preperation.
Spurred on by the Deepwater Horizon disaster and modeled after requirements in other parts of the world, the Safety and Environmental Management Systems (SEMS) are meant to force oil and gas companies to identify risks systematically at every stage of their work.
For many companies, especially large operators with global offshore drilling programs, the mandate meant tinkering with existing workplace safety programs to match the new federal requirements.
But small operators and offshore contractors have had to do a lot more. Ken Wells, the Director of Special Projects for Mandeville, LA says "It’s been a mad scramble. It’s been constant, and there’s been more activity focused on this – just compliance – than anything I have ever seen in the oil and gas industry.”
Industry officials and compliance firms that have helped companies get ready say they are prepared. But it is still unclear how the government will enforce the new rule and audit companies to make sure they are complying, though it is clear that audits could begin immediately by the Interior Department's Bureau of Safety and Environmental Enforcement.
David Smith, Spokesman for the Department, said Monday they will begin soon. He emphasized that the audits are distinct from other regulatory procedures such as reviews of exploration plans or drilling permit applications.
“At the outset, we do not plan to publish the results of individual SEMS audits but instead to report results in the aggregate so that operators can learn about the areas in which we are most commonly finding problems and deficiencies,” Smith said.
Industry leaders say they are hoping for a transition period, during which federal regulators notify companies of violations but delay possible fines or other penalties.
Herein rises the topic of Close Coordination. “Everybody has had this date circled on their calendar for some time,” said Randall Luthi, president of the National Ocean Industries Association and a former offshore drilling regulator, "What we’re hoping is that it doesn’t unleash a whole rash of notices for noncompliance and that the regulatory agency actually works closely with industry.”
Luthi went on to say "It makes sense to have 'a period of close coordination' between industry and federal regulators, where violations are first flagged, discussed and resolved....There’s going to be learning on both parts,” he said. “Industry has done its best to read the rule and understand what is going to be expected of them, but there may be an honest misunderstanding of how the regulations are interpreted.”
U.S. Rep. Jeff Landry, R-La., a critic of the SEMS requirement, recommended a similar approach, saying "I would urge them to consider being very cooperative with the industry in trying to create the best safety environment possible without running people out of business,”
The SEMS mandate gives offshore oil and gas companies the burden of proof that they and their contractors are identifying and managing offshore risks that can lead to lethal accidents. The rule requires that companies conduct broad risk assessments of their facilities, step up their training of workers and have programs for addressing operational and shift changes offshore.
Danny Walker, the vice president of compliance for Lloyd’s Register North America Inc., which has been helping more than 40 companies build SEMS programs, said exploration companies were better prepared for the mandate, but on the production side, it’s been a different story.
For all, the biggest challenge is the transition from a check-the-box proscriptive regulatory system to one that is more holistic.
This is a big “change in culture,” Walker said. “We’re moving from a proscriptive regulatory environment on the outer continental shelf to a more performance-based approach.”
Federal regulators insist the mandate will boost the safety of offshore drilling.
“If these programs are implemented conscientiously, we expect a decrease in the frequency and severity of offshore accidents,” said Michael Bromwich, outgoing director of the Bureau of Safety and Environmental Enforcement.
An increase of safetly doesnt decrease the danger of offshore drilling. Accidents happen every day and they will happen in the future. If you or anyone you know has been injured in an offshore accident, contact the attorneys at VB for free information and help.
Category: Offshore Oil Rig Accident
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